Hydropower Fuels Kyrgyzstan’s Crypto Mining Industry
Kyrgyzstan’s water-rich environment has the potential to provide a necessary boost for the country’s crypto mining industry – but that power is currently difficult to access.
The Central-Asian country boasts beautiful nature and within it – importantly for miners – a large amount of water resources.
According to the country’s government,
“Kyrgyzstan is the only country in Central Asia whose water resources are almost completely formed on its own territory, and this is its hydrological feature and advantage. The republic has significant water and hydropower resources, and this is one of its main wealth.”
The country has more than 2,000 rivers longer than 10 km long. Furthermore, “a significant amount” of water is concentrated in lakes, small ponds, and reservoirs, covering 6,836 square kilometers. Additionally, there are 6,580 glaciers, with reserves of about 760 billion cubic meters.
However, the country still has to import electricity due to various restrictions and technical issues.
These resources may eventually be key to the growth of Kyrgyzstan’s crypto mining industry.
According to Energy Minister Taalaibek Ibraev, as published last month in local media, all mining farm owners also own small hydroelectric power stations.
The Minister stated that,
“The generated electricity is used, firstly, for our own needs, and secondly, on a contractual basis. The owner of a small hydroelectric power station knows with whom to enter into an agreement. The rest of the electricity is purchased by the state.”
That said, the country’s single mining farm buys electricity in Kazakhstan and pays Kyrgyzstan for transit.
There has been quite a change in the country’s mining ecosystem over the past year.
Despite supporters in political circles who
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